WOULD YOU

The OC&C TRUST A Proposition Index MACHINE?2013

An OC&C Insight Taking on the Machines<#> WOULD YOU TRUST A MACHINE? THE OC&C PROPOSITION INDEX 2013

This is the fourth year of the OC&C Proposition Index, a major piece of consumer research into shopper attitudes towards the world’s leading retailers. Consumers are asked WINNER to rate the retailers they have shopped on the strength of OVERALL their overall proposition, and then to score the key elements PROPOSITION of that proposition (Price, Range, Service, etc). The results are then used to compile a ranking of consumers’ favourite retailers from across the globe.

The OC&C Proposition Index continues to grow, this year capturing 300,000 ratings from over 30,000 consumers 2ND PLACE 3RD PLACE OVERALL OVERALL regarding nearly 600 retailers across 9 countries. This PROPOSITION PROPOSITION combination of breadth and depth gives a powerful view into the relative strength of retail propositions across the world.

Virtual Reality Check

It is no longer a surprise that Amazon stands In , Amazon’s second largest global Germany Germany YoY atop our global index. In 2010, when we market and historically its strongest territory 2013 2012 Change released the first OC&C Proposition Index, in the OC&C Proposition Index, its crown has Rank Rank in Rating there was genuine shock in some quarters very much slipped. Recent labour disputes that an online player had already usurped with warehouse workers and subsequent Overall Rating 2 1 -8 large household names as the world’s strikes have tainted the company’s Low Prices 12 6 -5 favourite retailer. Since then Amazon’s relationship with consumers. In 2012 Amazon annual revenues have doubled to over was the top retailer in Germany across the Quality of Products 6 1 -6 $60bn and its stranglehold on the hearts and vast majority of proposition elements (only Wide Choice of minds of consumers has grown ever-tighter. losing out on low prices). However 12 months 11-5 Amazon consistently tops the index across on it has lost its leadership in all of those areas Products Products That are multiple markets (this year the UK, US and other than breadth and relevance of choice. 1 1 -4 France) and in multiple proposition elements Suited to Me This is a significant change. Of particular note (Choice, Value for Money and Trust). Service 2 1 -4 is the impact on Amazon’s trust rating. Trust However, even the great it seems are not has historically proven to be the most Store Look & Feel 4 1 -5 infallible. Amazon has lost its global important factor in driving overall consumer leadership on service and on look and feel, perception of a retailer and has long been a Value For Money 2 1 -5 in both cases being replaced by store-led core strength of Amazon’s across multiple retailers evincing a more traditional markets. Amazon’s recent experience in Trust 6 1 -9 ‘human’ element in these areas (John Germany shows how fragile Trust can be and Lewis in service and Polish jeweller Apart the impact it can have across consumer Rate Online 1 1 -6 in store environment). perceptions of a whole proposition.

Losing Trust

Amazon Change in Trust Rating by Market Germany and also in the UK Amazon has lost The contrast with its home market is stark, Germany -8 its trust leadership. The impact of recent with Amazon scoring above average in both negative publicity can be seen in both markets: areas in the US despite its use of regulatory UK -6 in Germany Amazon’s attitude through its loopholes to avoid Sales Tax in all but 12 of France -2 recent labour woes has been reflected in the 50 states (admittedly, this is a tactic -2 consumers views of it as a ‘Fair & Ethical’ that directly benefits the consumer which US -1 retailer, with Amazon Germany registering the helps support positive sentiment). These second lowest score globally in this area, differing perceptions, coupled with -1 above only Kik (the German discounter closely complaints in Germany about Amazon tied to recent factory disasters in Bangladesh); attempting to “import American-style Germany is not the only market where in the UK widely publicised criticisms of business practices that stand at odds with Amazon is facing Trust challenges. While Amazon’s tax avoidance program have had a European norms” with regard to their overall Amazon remains the world’s most clear impact on sentiment with UK consumers attitude to unions, serve to highlight some trusted retailer, a position that has been built rating Amazon lower than any other retailer in of the cultural challenges facing retailers as up through exceptional Delivery on Promise the world in terms of ‘Paying Fair Taxes’, they try to internationalise – a theme we and a consistently reliable pricing policy, in scoring 20% below its closest rival. will return to later.

01 An OC&C Insight Would You Trust a Machine? Amazon Trust Elements Ratings by Country (Difference to Global Average)

Retailer Is Retailer Delivers Retailer Fair Safe and Reliable Retailer Pay Retailer Charges Retailer Around On My Side Promises and Ethical Products Fair Tax Fair Price Long Time US 8 14 8 99 3 1414 6

France 3 8 -2 66 -7 88 4 UK 1 12 -1 77 -22 1010 3 Germany 5 8 -14 55 -6 66 -7 China 7 6 – 4 – 66 5 4 6 4 3 3 55 4 Netherlands -1 -0 -5-5 -2 -5-7 2 2

Amazon is not the only retailer to face There have been other high-profile case with the Federal Trade Commission Trust challenges in 2013. Across the index contributions to declines in Trust: in after admitting to using real fur in certain some retailers have seen large declines in January the UK’s Play.com (now part of artificial fur products. Public relations faux- overall trust rating. Leading these are DFS, Rakuten) announced that they would be pas can have a large impact on a retailer’s the UK furniture retailer, Zappos and withdrawing from direct retail following the trust ratings. The largest such incident of Play.com. Zappos’ decline is striking, closure of a tax loophole by the UK the year, ’s much publicised supply having ranked 4th overall in the index on government and operating solely as a chain troubles, also had a large impact on Trust last year. At that time Zappos was in marketplace for other merchants going the retailer’s trust rating, which was down 5 the recent aftermath of a security breach forward; in March Neiman Marcus settled a points from 2012. that resulted in the loss of 24 million customers’ data, but were receiving praise Largest Trust Declines 2013 for handling the breach quickly and Geographies 2013 effectively. However the impact of that Retailer 2013 Trust Score Difference breach has dragged on, with customers DFS UK 59.4 -8 required to change their security details Zappos US 77.5 -8 and some bringing a class law suit Play.com UK 71.6 -8 against Zappos for losing their data which Zappos tried (and failed) to block relying (JMD) Poland 69.1 -7 on the terms of their user agreement. Neiman Marcus US 68.4 -7

The Human Touch OC&C PROPOSITION INDEX – TOP 20 RETAILERS Looking down the top 20 in the OC&C Strongest Weakest Proposition Index reconfirms the importance Rank Company Category Country Area Area Score¹ Chg² 1 Amazon Gen Merch US FR UK DE Choice Low Prices 88.6 -4.3 of Trust; seven of the top 10 retailers on trust CN NL PL find themselves in the top 20 overall. 2 DM Health & Beauty DE Choice Online 87.2 -1.3 However, there are other characteristics that 3 Picard Grocery FR Quality Low Prices 86.0 -3.6 are also well represented. In particular, the 4 Yves Rocher Health & Beauty FR Trust Low Prices 85.8 1.2 top 20 is strongly weighted towards retailers delivering well against some of the more 5 Costco Club US Quality Service 85.3 -0.3 traditional elements of a retail proposition: 6 Trader Joes Grocery US Quality Low Prices 84.9 -1.7 consistent quality, good levels of service and 7 Apple Electricals US UK FR Quality Low Prices 84.8 0.3 an appealing store environment. The likes of 8 John Lewis Department Stores UK Quality Low Prices 84.6 -2.7 Apart, Publix, Apple, Douglas and John Lewis 9 newegg Electricals US Choice Service 84.2 3.6 are reminding us of the value of edited choice coupled with strong merchandising 10 Douglas Health & Beauty DE PL NL FR Choice Low Prices 84.1 2.3 and attention to detail in store fit out, and 11 Entertainment DE Choice Low Prices 84.0 -0.5 the power of attentive, knowledgeable staff 12 L.L.Bean Apparel US Quality Low Prices 84.0 – in-store. The consumer is rewarding these 13 Cultura Entertainment FR Choice Low Prices 83.8 0.6 retailers for investing in what matters to deliver a better overall customer experience. 14 Publix Grocery US Look & Feel Low Prices 83.8 – 15 Vente-privée Apparel FR Quality Service 83.7 -0.3 16 Bath and Body Works Health & Beauty US Quality Low Prices 83.5 -0.2 17 Apart Jewellery PL Look & Feel Low Prices 83.5 – 18 Zafari e Bourbon Grocery BR Quality Low Prices 83.3 – 19 Leboncoin Gen Merch FR Choice Service 83.2 -1.3 20 Decathlon Sports & Outdoors FR BR Choice Online 83.1 0.2

An OC&C Insight Would You Trust a Machine? 02 CONSUMER PROPOSITION CHAMPIONS

LOW PRICES VALUE FOR MONEY Rank Retailer Shopper Rating Rank Retailer Shopper Rating 1 Primark 93.5 1 Amazon 86.3 2 90.6 2 Farm Foods 84.5 3 89.8 3 84.2 4 Action 89.4 4 84.1 5 99p store 89.3 5 DM 83.9 6 Aldi 88.3 6 Costco 83.4 7 Home Bargains 88.1 7 Dollar Tree 83.4 8 Farm Foods 87.9 8 Card Factory 83.0 9 Kik 87.4 9 Yves Rocher 82.9 10 Card Factory 86.1 10 Poundland 81.8

TRUST SERVICE Rank Retailer Shopper Rating Rank Retailer Shopper Rating 1 Amazon 85.5 1 John Lewis 86.3 2 Yves Rocher 85.1 2 Amazon 85.3 3 John Lewis 84.5 3 Publix 84.6 4DM 84.2 4 Douglas 84.3 5 L.L.Bean 84.0 5 Trader Joes 84.2 6 Saraiva 83.1 6 Apart 83.9 7 Picard 82.3 7 Bath and Body Works 83.3 8 Netshoes 82.1 8 Apple 83.2 9 Thalia 82.0 9 Thiriet 83.2 10 Trader Joes 81.8 10 82.9

PRODUCT QUALITY WIDE CHOICE OF PRODUCTS Rank Retailer Shopper Rating Rank Retailer Shopper Rating 1 M&S Simply Food 88.7 1 Amazon 93.5 2 Apple 88.1 2 Ebay 92.7 3 Douglas 88.0 3 Taobao 89.4 4 John Lewis 87.9 4 Douglas 88.8 5 DM 87.8 5 Allegro 88.8 6 L.L.Bean 87.5 6 Kaufland 88.7 7 Whole Foods 86.8 7 Globus 88.6 8 Thalia 86.8 8 Thalia 88.3 9 Trader Joes 86.3 9 DM 88.2 10 Waitrose 86.3 10 Droguerie Müller 88.1

STORE / WEBSITE LOOK AND FEEL FASHIONABILITY Rank Retailer Shopper Rating Rank Retailer Shopper Rating 1 Apart 85.9 1 Victoria's Secret 84.9 2 Publix 85.8 2 Esprit 84.0 3 Apple 85.4 3 Zalando 83.8 4 Douglas 85.4 4 Arezzo 82.7 5 Amazon 85.2 5 Asos 82.3 6 John Lewis 84.4 6 Dafiti 82.2 7 Sephora 84.4 7 Zara 81.7 8 Thalia 84.3 8 JCrew 81.6 9 DM 84.1 9 H&M 81.5 10 Nordstrom 84.0 10 Forever 21 81.0

03 An OC&C Insight Would You Trust a Machine? What is Trust? The World is Getting Drivers of Trust Smaller...But Staying Diverse Overall UK US DE FR NL CH PL IN Safe and Reliable Products 1 1 2 6 1 1 1 1 1 Internationalisation is an increasingly hot Retailer Deliver Promises 2 2 1 222222 topic in retail, with many retailers trying Retailer On My Side 3 3 3 1 5 4 3 3 4 to solve the challenge of delivering a strong multinational proposition that Retailer Fair Price 4 4 4 3 3 5 4 4 6 meetslocal needs whilst still retaining a Retailer Around Long Time 5 5 6 5 4 3 5 5 3 unified global proposition. We mentioned Retailer Fair and Ethical 6 6 5 4 6 665earlier some of the troubles Amazon has Retailer Pay Fair Tax 7 7 7 7 7 7 7 7 been experiencing in dealing with the differing attitudes and cultures in play While negative publicity can have a big impact least important factor in driving overall Trust across multiple markets. This is far from on a retailer’s trust rating, at it’s core the levels across all markets. We have seen a unique challenge. drivers of trust are more central to the already that while Amazon receives very Looking across the leading multinational proposition. At an overall global level offering poor ratings from UK consumers for Paying retailers (Amazon, eBay, Ikea, H&M and Safe and Reliable Products is the most Fair Taxes this has had only a small negative Zara) consumer ratings appear to suggest important factor in driving consumer trust, impact on their overall Trust rating and they that ‘harder’ or more concrete elements of closely followed by Delivery on Promise which remain the UK’s most trusted retailer. a proposition (factors such as breadth of highlights the importance of having a clear range and store look and feel) are easier to promise that is consistently delivered against. Across all markets the strongest social deliver and communicate consistently Retailers who are focused on product quality conscience appears to be displayed in across multiple markets, with the majority and service, such as John Lewis in the UK or Germany which is the market in which a of multinational retailers delivering a L.L. Bean in the US, understand this and are retailer being Fair and Ethical most stands similar rating on these factors in all rewarded by consumers as a result. L.L. Bean out as an important component of Trust. The markets where they are established. By leads the index in both offering Safe and Germans also place greater importance on contrast, the ‘softer’ or more subjective Reliable Products and Delivery on Promise and the value of a retailer being On the elements of the proposition (factors such ranks 5th globally on Trust as a result. The Customer’s Side, with this being the most as product quality, service, fashionability distinctive 100% lifetime guarantee on all their important factor influencing Trust in and, as mentioned before, trust) appear to products is a strong weapon in their armoury Germany which stands in contrast to the require a greater degree of localisation, for building lasting trust from consumers. other markets. The biggest beneficiary of this with the extent to which leading retailers appears to be DM who are the most trusted have succeeded in communicating these At the other end of the spectrum, consumers retailer in Germany (and 4th globally) by elements of their proposition across appear much less concerned about retailers’ virtue of being perceived to be on the multiple markets varying widely. tax payments than media headlines would consumer’s side with their combination of have us believe with Paying Fair Taxes the broad choice and fair prices. Average Variation in Rating (Max to Min) for International Retailers Across Developed Markets

OC&C PROPOSITION INDEX – TOP 20 RETAILERS Trust 7.9%

Rank Retailer Rank Retailer Rank Retailer Quality of Products 7.7% 1 DM 1 Amazon 1 Amazon Fashionability 7.5% 2 Amazon 2 John Lewis 2 Picard Low Prices 6.4% 3 Douglas 3 Apple 3 Yves Rocher Store Look & feel 6.3% 4 Thalia 4M&S 4 Cultura Value For Money 5.5% 5 Droguerie Müller 5 M&S Simply Food 5 Vente-privée Wide Choice of Products 4.4%

Rank Retailer Rank Retailer Rank Retailer 1 Bol.com 1 Amazon.com 1 Apart 2 IKEA 2 Costco 2 Rossmann 3 Douglas 3 Trader Joes 3 Allegro 4 4 Apple Store 4 Empik 5 Bijenkorf 5 newegg 5 Douglas

Rank Retailer Rank Retailer Rank Retailer 1 Flipkart.com 1 Adidas 1 Zafari e Bourbon 2 The Raymond Shop 2 Nike 2 Saraiva 3 McDonalds 3 Ikea 3 Netshoes 4 Levi's 4 360buy 4 Hering 5 Dominos 5 Amazon 5 Angeloni

An OC&C Insight Would You Trust a Machine? 04 CATEGORY PROPOSITION CHAMPIONS

GROCERY APPAREL

ELECTRICALS DEPARTMENT STORES

GENERAL HEALTH & BEAUTY MERCHANDISER

ENTERTAINMENT DIY

HOUSEHOLD FURNITURE

05 An OC&C Insight Would You Trust a Machine? Rising Platforms Top 10 Online Pureplays Overall Online players continue to play a leading Rank Retailer Category Country(ies) role in the OC&C Proposition Index. Joining 1 Amazon General Merchandiser US FR UK DE CH NL PL Amazon in the Top 20 are a select number 9 newegg Electricals US of its eCommerce counterparts: newegg, 15 Vente-privée Apparel FR Vente-privee and Leboncoin. Across these 19 Leboncoin General Merchandiser FR three, and across the rest of the Online 27 Club des Créateurs de Beauté Health & Beauty FR Pureplay Top 10, there is the strong theme of Do It Yourself retail; sites where huge 30 Ebay General Merchandiser UK US DE FR IN PL ranges and cutting edge prices represent 33 iTunes Entertainment US FR treasure troves for those willing and, as 39 Bol.com Entertainment NL importantly, able to put in the effort to find 43 Flipkart.com General Merchandiser IN them. Indeed, if we look across the top 10 45 Allegro General Merchandiser PL Online Pureplays from the Index and compare them to the top 10 multi-channel Top 10 Online PurePlays vs Top 10 Multichannel Retailers players there is a clear message: pureplays are the place to go for unbridled choice and Multichannel Outperform Online Outperform bargain prices; if you are looking for a Low Prices 9 curated range of guaranteed quality Fashionability 7 products supported by good service levels Rate Online 3 Wide Choice of Products 2 and a welcoming environment then the Value For Money 2 leading multichannel retailers remain Products That are Suited to Me 0 consumers’ preferred destinations. Trust -4 Service -5 Store Look & Feel -5 Quality of Products -8 Overall Rating 2 Role of Multichannel

That is not to say that store-based retailers across multiple channels. Argos has long been Multichannel Premium can afford to rest on their traditional regarded as the leading multi-channel retailer Germany 7.5% strengths. Multichannel is an increasingly in the UK (if not the world) and was an early France 7.2% important component of a retailer’s pioneer of Click and Collect technology, using US 6.9% proposition and finding ways to use these it to drive multichannel penetration among its UK 6.8% new channels to continue to deliver, and customer-base from an early stage. However, Overall 6.3% build upon, those traditional sources of that John Lewis has been so successful in 5.1% advantage and differentiation is crucial to driving multi-channel participation is a tribute future survival. to the effort that has been put into online China 4.8% marketing, SEO and in-store initiatives to drive Netherlands 4.0% Leading the charge on this multichannel cross-channel shopping. battlefield are four diverse retailers who have Impact of Multichannel Participation – Average been successful in migrating a large Driving increasing multichannel presence is Overall Rating proportion of their customer base onto not just an opportunity to future-proof the 75.0% 75.4% multiple channels. Argos (47%), Empik and business, it is an opportunity to better engage 74.1% RTV Euro AGD (both 37%) and John Lewis with consumers, increasing affinity and 71.9% 72.3% (34%) lead the way with the highest loyalty. Multichannel customers generally 70.7% proportion of their customers shopping them represent a retailer’s best customers, on average rating the same retailer 6% higher Leading Multichannel Retailers than a single channel customer. % Multichannel <5%5-10% 10-15% 15-20% 20-25% >25% Country Retailer Customers Fashion retailers have been deploying this % Customers Using Multiple Channels UK Argos 47.3% particularly well, with Breuninger, Esprit and Poland Empik 37.4% Monsoon all successful in driving strong Poland RTV Euro AGD 36.5% ratings from their multichannel customers UK John Lewis 34.1% (c.20% higher than average ratings), using US Apple 34.0% advanced website functionality to present a compelling browsing proposition. However, US Best Buy 33.4% there remains significant opportunity for Germany Tchibo 33.3% these retailers to further leverage this France FNAC 33.3% advantage as they have not yet succeeded in US Toys R Us 33.1% driving more than 15-20% of their customers US IKEA 31.9% into these value creating channels.

An OC&C Insight Would You Trust a Machine? 06 THE OC&C PROPOSITION INDEX 2013 – THE T RATING OF OVERALL RETAIL PROPOSITION BY CONSUMERS VISITING OR PURC

Rank Company Category Country Score¹ Chg² Rank Company Category Country Score¹ Chg²

1 Amazon Gen Merch US FR UK DE CN NL PL 88.6 -4.3 51 Bonprix Apparel DE 80.9 2.4 2 DM Health & Beauty DE 87.2 -1.3 52 Brooks Brothers Apparel US 80.6 – 3 Picard Grocery FR 86.0 -3.6 53 Healthspan Health & Beauty UK 80.5 – 4 Yves Rocher Health & Beauty FR 85.8 1.2 54 360buy Gen Merch CN 80.5 -1.8 5 Costco Club US 85.3 -0.3 55 Esprit Apparel DE CN NL 80.5 -0.9 6 Trader Joes Grocery US 84.9 -1.7 56 Nordstrom Department Stores US 80.4 -3.6 7 Apple Electricals US UK FR 84.8 0.3 57 Specsavers Optical UK 80.3 -2.4 8 John Lewis Department Stores UK 84.6 -2.7 58 Waitrose Grocery UK 80.3 -1.9 9 newegg Electricals US 84.2 3.6 59 Home Bargains Discount UK 80.3 -0.8 10 Douglas Health & Beauty DE PL NL FR 84.1 2.3 60 Kaufland Grocery DE 80.2 -0.1 11 Thalia Entertainment DE 84.0 -0.5 61 RT Mart Grocery CN 80.2 -1.8 12 L.L.Bean Apparel US 84.0 – 62 T-Mall Gen Merch CN 80.2 -2.1 13 Cultura Entertainment FR 83.8 0.6 63 Marionnaud Health & Beauty FR 80.2 -1.5 14 Publix Grocery US 83.8 – 64 Empik Entertainment PL 80.2 -3.2 15 Vente-privée Apparel FR 83.7 -0.3 65 Cdiscount Gen Merch FR 80.1 1.4 16 Bath and Body Works Health & Beauty US 83.5 -0.2 66 Wilkinson Gen Merch UK 80.1 -1.7 17 Apart Jewellery PL 83.5 – 67 Grocery CN FR PL 80.1 0.4 18 Zafari e Bourbon Grocery BR 83.3 – 68 Nocibé Health & Beauty FR 80.1 1.3 19 Leboncoin Gen Merch FR 83.2 -1.3 69 Leclerc Grocery FR PL 80.1 0.4 20 Decathlon Sports & Outdoors FR BR 83.1 0.2 70 PetSmart Other US 80.1 – 21 Rossmann Health & Beauty PL DE 83.0 -3.0 71 Kohl's Department Stores US 80.0 -1.4 22 Droguerie Müller Health & Beauty DE 83.0 2.0 72 BJs wholesale Club US 79.9 -2.4 23 M&S Apparel UK IN 82.8 -1.2 73 Aldi Grocery UK DE US NL 79.9 -0.4 24 Thiriet Food Service & QSR FR 82.7 – 74 Leroy Merlin DIY FR BR PL 79.9 -1.2 25 Saraiva Entertainment BR 82.6 – 75 Ernstings Family Apparel DE 79.8 0.6 26 M&S Simply Food Grocery UK 82.5 -1.7 76 Krys Optical FR 79.7 -0.9

27 Club des créateurs de Beauté Health & Beauty FR 82.4 0.5 77 Galeries Lafayette Department Stores FR 79.7 -0.7 28 Netshoes Sports & Outdoors BR 82.3 – 78 Angeloni Grocery BR 79.6 – 29 Hering Apparel BR 82.2 – 79 Whole Foods Grocery US 79.6 -3.9 30 Ebay Gen Merch UK US DE FR IN PL 82.1 -0.6 80 SOliver Apparel DE 79.6 2.2 31 FNAC Electricals FR 82.1 -1.4 81 Farm Foods Grocery UK 79.3 – 32 Nature et Découvertes Department Stores FR 82.1 -2.5 82 Drogaria SP Health & Beauty BR 79.3 – 33 iTunes Entertainment US FR 82.1 -2.4 83 Argos Gen Merch UK 79.3 -2.1 34 Grocery US 82.1 0.5 84 Maisons du Monde Household FR 79.2 -1.6 35 Sephora Health & Beauty US FR CN PL 82.0 -2.0 85 Edeka Grocery DE 79.2 1.8 36 Tchibo Department Stores DE 82.0 -0.5 86 C&A Apparel DE BR PL FR CN NL 79.2 -0.2 37 Vi ctoria's Secret Apparel US 81.9 – 87 Hornbach DIY DE NL 79.1 -0.2 38 IKEA Furniture CN NL UK FR US 81.9 -2.3 88 Williams-Sonoma Household US 79.1 -3.8 39 Bol.com Entertainment NL 81.7 -0.4 89 Greggs Other UK 79.1 -2.4 40 Espace Culturel Leclerc Entertainment FR 81.6 0.5 90 Price Minister Gen Merch FR 79.1 -0.1 41 Sam's Club Club US 81.4 -2.8 91 Zappos Apparel US 79.1 -4.9 42 Lakeland Other UK 81.3 – 92 McDonalds Food Service & QSR IN FR 79.1 8.4 43 Flipkart.com Gen Merch IN 81.2 -0.6 93 The Raymond Shop Apparel IN 79.1 -1.1 44 Lowe's DIY US 81.2 -0.5 94 Pague Menos Health & Beauty BR 79.1 – 45 Allegro Gen Merch PL 81.1 -6.1 95 Americanas Department Stores BR 79.0 – 46 Barnes & Noble Entertainment US 81.1 -1.4 96 Marisa Apparel BR 79.0 – 47 Globus Grocery DE 81.1 -2.2 97 Grocery CN BR US 78.9 -2.3 48 L'Occitane Health & Beauty FR 81.0 -3.5 98 Uniqlo Apparel CN 78.9 1.5 49 Otto Department Stores DE 80.9 0.8 99 Deichmann Apparel DE 78.9 0.6 50 Entertainment UK 80.9 – 100 Macy's Department Stores US 78.8 0.5

¹ The score is the retailer’s highest overall proposition rating globally. Consumer proposition index ratings within a country have been normalised to make them comparable globally ² Change indicates difference in overall proposition rating 2012-13

07 An OC&C Insight Would You Trust a Machine? TOP 400 RETAILERS CHASING AT RETAILER IN LAST 3 MONTHS (INDEXED 0-100)

Rank Company Category Country Score¹ Chg² Rank Company Category Country Score¹ Chg² 101 Target Gen Merch US 78.8 -2.6 151 Zalando Apparel FR DE NL 77.4 -0.6 102 Printemps Department Stores FR 78.8 0.1 152 M&M Direct Apparel UK 77.3 -1.5 103 Dafiti Apparel BR 78.7 – 153 Tesco Grocery CN UK PL 77.3 -2.6 104 The Home Depot DIY US 78.6 -1.4 154 GameStop Entertainment US 77.2 -2.2 105 Asda Grocery UK 78.6 -0.5 155 Dollar Tree Discount US 77.2 -2.0 106 Body Shop Health & Beauty UK US 78.6 2.2 156 Piotr i Paweł Grocery PL 77.2 0.3 107 Clarks Apparel UK 78.6 -0.7 157 Lidl Grocery DE NL PL UK FR 77.2 0.3 108 Panvel Health & Beauty BR 78.5 – 158 Dominos Food Service & QSR IN 77.2 – 109 Yonghui Grocery CN 78.5 – 159 Crate and Barrel Household US 77.2 -3.8 110 Boots Health & Beauty UK 78.4 -2.6 160 KFC Food Service & QSR IN FR 77.1 6.2 111 Dobbies Household UK 78.4 – 161 Magazine Luiza Department Stores BR 77.1 – 112 Optic 2000 Optical FR 78.3 0.1 162 Asos Apparel UK DE 77.1 -2.7 113 Saks Fifth Avenue Department Stores US 78.3 -3.7 163 Conrad Elektronik Electricals DE 77.0 -0.7 114 Jcrew Apparel US 78.3 2.4 164 Toys R Us Other US UK 77.0 -1.8 115 Casas Bahia Furniture BR 78.3 – 165 Red Star Mecalline Furniture CN 77.0 – 116 Yihaodian Grocery CN 78.2 -1.9 166 Bijenkorf Department Stores NL 76.9 2.8 117 Banana Republic Apparel US 78.2 4.0 167 Sainsbury's Grocery UK 76.9 0.6 118 Richer Sounds Electricals UK 78.2 -1.8 168 dangdang Gen Merch CN 76.9 -2.3 119 Riachuelo Apparel BR 78.2 – 169 Pizza Hut Food Service & QSR IN 76.9 –

120 Zara Apparel CN FR IN DE PL UK US NL 78.2 -0.7 170 Vero Moda Apparel CN NL 76.9 3.4 121 Suning Electricals CN 78.0 -1.4 171 Iceland Grocery UK 76.9 -2.6 122 Hotter Shoes Apparel UK 78.0 – 172 La Redoute Apparel FR 76.8 -1.0

123 H&M Apparel CN US PL FR DE NL UK 78.0 -2.8 173 Boulanger Electricals FR 76.8 0.0 124 Ace Hardware DIY US 78.0 – 174 Castorama DIY PL FR 76.8 -2.0 125 Staples Stationers US 77.9 -0.1 175 Bauhaus DIY DE 76.8 -0.7 126 Cath Kidston Other UK 77.9 – 176 Centauro Sports & Outdoors BR 76.8 – 127 Belle Apparel CN 77.9 -2.6 177 GAP Apparel CN US UK 76.7 -1.1 128 P&C Apparel DE 77.9 -1.8 178 361° Apparel CN 76.7 0.7 129 Levi's Apparel IN 77.8 -0.2 179 Burlington Coat Factory Apparel US 76.7 -1.9 130 Alma Market Grocery PL 77.8 -0.6 180 WuMart Grocery CN 76.7 -0.1 131 Watsons Health & Beauty CN 77.8 -2.8 181 Rueducommerce Gen Merch FR 76.7 -0.3 132 Jack and Jones Apparel CN IN 77.8 0.5 182 Alain Afflelou Optical FR 76.7 -3.8 133 Kiabi Apparel FR 77.7 1.3 183 Strauss Innovation Department Stores DE 76.7 2.9 134 H-E-B Grocery US 77.7 – 184 Generale d'Optique Optical FR 76.6 -2.2 135 Li Ning Apparel CN 77.7 -4.6 185 Mediamarkt Electricals DE PL NL 76.6 0.9 136 Tom Tailor Apparel DE 77.7 – 186 Play.com Entertainment UK 76.6 -4.9 137 Bed Bath and Beyond Household US 77.7 -1.4 187 Walgreens Health & Beauty US 76.6 -1.5 138 Celio Apparel FR 77.7 – 188 Alinea Household FR 76.6 0.7 139 Drogarias Pacheco Health & Beauty BR 77.6 – 189 CI XL Health & Beauty NL 76.6 – 140 Arezzo Apparel BR 77.6 – 190 Ponto Frio Electricals BR 76.5 – 141 Darty Electricals FR 77.6 -2.1 191 Gome Electricals CN 76.5 -2.6 142 Only Apparel CN 77.6 -1.5 192 OBI DIY DE PL 76.5 0.5 143 QVC Other DE 77.5 – 193 Best Buy Electricals US 76.5 -0.4 144 The Range Other UK 77.4 – 194 Armand Thiery Apparel FR 76.4 – 145 Jules Apparel FR 77.4 – 195 Siciliano Entertainment BR 76.4 – 146 Taobao Gen Merch CN 77.4 -3.3 196 Lojas Renner Apparel BR 76.4 – 147 Dunelm Mill Gen Merch UK 77.4 -3.7 197 Vancl Apparel CN 76.4 0.5 148 Submarino Department Stores BR 77.4 – 198 Etam Apparel FR CN 76.3 -2.1 149 Debenhams Department Stores UK 77.4 -0.4 199 Drogasil Health & Beauty BR 76.3 – 150 Saturn Electricals DE NL PL 77.4 1.9 200 Wehkamp Apparel NL 76.3 1.4

¹ The score is the retailer’s highest overall proposition rating globally. Consumer proposition index ratings within a country have been normalised to make them comparable globally ² Change indicates difference in overall proposition rating 2012-13

An OC&C Insight Would You Trust a Machine? 08 THE OC&C PROPOSITION INDEX 2013 – THE T RATING OF OVERALL RETAIL PROPOSITION BY CONSUMERS VISITING OR PURC

Rank Company Category Country Score¹ Chg² Rank Company Category Country Score¹ Chg² 201 Neiman Marcus Department Stores US 76.3 -3.8 251 Shell Service Stations PL 75.3 2.1 202 Action Household NL 76.3 1.9 252 99p store Discount UK 75.3 -2.4 203 Bloomingdale's Department Stores US 76.3 -0.6 253 Primark Apparel UK DE 75.3 -0.4 204 Optical Centre Optical FR 76.2 3.8 254 Carphone Warehouse Electricals UK 75.2 2.3 205 Breuninger Department Stores DE 76.2 2.2 255 Marshalls Department Stores US 75.2 -2.8 206 Camaieu Apparel FR 76.2 -0.7 256 Sports Direct Sports & Outdoors UK 75.2 0.3 207 Stop & Shop Grocery US 76.2 – 257 Harrods Department Stores UK 75.2 – 208 Brico Dépôt DIY FR 76.2 1.1 258 Promod Apparel FR 75.2 1.3 209 Super-Pharm Health & Beauty PL 76.2 -3.1 259 Morrison Grocery UK 75.2 -2.6 210 Depot Other DE 76.2 -2.3 260 Old Navy Apparel US 75.0 -1.2 211 Sarenza Apparel FR 76.1 1.7 261 Notebooksbilliger Electricals DE 75.0 -5.4 212 Kappa Apparel CN 76.0 -0.4 262 Butlers Other DE 75.0 -3.0 213 Reserved Apparel PL 76.0 -4.2 263 Mothercare Other UK IN 75.0 1.0 214 Selfridges Department Stores UK 76.0 -6.0 264 Pão de Açucar Grocery BR 75.0 – 215 Droga Raia Health & Beauty BR 76.0 – 265 Wiggle.co.uk Sports & Outdoors UK 75.0 0.8 216 Paperchase Stationers UK 76.0 – 266 Hagebau DIY DE 74.9 2.5 217 Ebuyer Electricals UK 75.9 -1.7 267 Hema Department Stores NL 74.9 -1.1 218 Intersport Sports & Outdoors FR 75.8 -0.5 268 Lifestyle Department Stores IN 74.9 -1.3 219 True Value DIY US 75.8 – 269 Save-A-Lot Grocery US 74.9 -1.6 220 Leader Magazine Department Stores BR 75.7 – 270 Gemo Apparel FR 74.9 1.6 221 Extra Grocery BR 75.7 – 271 Buffalo Grill Food Service & QSR FR 74.9 0.5 222 Kaufhof Department Stores DE 75.7 0.2 272 Shoppers Stop Department Stores IN 74.8 -1.1 223 Poundland Discount UK 75.7 -1.4 273 Grocery NL 74.8 -1.8 224 Grocery FR BR CN PL 75.7 -0.6 274 Miss Etam Apparel NL 74.8 1.1 225 Card Factory Stationers UK 75.7 -7.9 275 La Pataterie Food Service & QSR FR 74.8 – 226 Metersbonwe Apparel CN 75.7 -3.0 276 New Yorker Apparel DE 74.7 1.5 227 Système U Grocery FR 75.6 -1.9 277 Real Grocery DE 74.7 -0.9 228 Pernambucanas Department Stores BR 75.6 – 278 Womai Grocery CN 74.7 -0.2 229 Matalan Apparel UK 75.6 0.3 279 Expert Electricals DE NL 74.6 -0.4 230 Orlen Service Stations PL 75.6 -0.4 280 Sport 2000 Sports & Outdoors FR 74.6 4.2 231 Rewe Grocery DE 75.6 -1.2 281 Pantaloons Department Stores IN 74.5 -0.8 232 Pepe Jeans Apparel IN 75.6 1.3 282 Les 3 Suisses Apparel FR 74.5 -1.0 233 Austin Reed Apparel UK 75.6 – 283 U S Polo Association (USPA) Apparel IN 74.5 – 234 B&M Bargains Discount UK 75.6 -2.9 284 Boots Opticians Optical UK 74.4 -0.1 235 American Eagle Outfitters Apparel US 75.5 -0.5 285 Next Apparel UK 74.4 0.4 236 CVS Health & Beauty US 75.5 -0.9 286 House of Fraser Department Stores UK 74.4 -2.1 237 Intermarche Grocery FR PL 75.5 0.1 287 Semir Apparel CN 74.4 -0.9 238 TK Maxx Apparel US UK 75.5 -1.6 288 Görtz Apparel DE 74.4 -0.1 239 Pets at Home Other UK 75.5 -3.2 289 Trust Mart Grocery CN 74.4 -4.0 240 Ocado Grocery UK 75.4 1.8 290 Hobbycraft Other UK 74.4 -0.8 241 Aeropostale Apparel US 75.4 -4.2 291 Toom - Der Baumarkt DIY DE 74.4 0.6 242 Biedronka (JMD) Grocery PL 75.4 -7.2 292 Peter England Apparel IN 74.3 0.0

243 Dawanda Other DE 75.4 -7.7 293 ChainReactionCycles.com (CRC) Sports & Outdoors UK 74.3 -4.7 244 Louis Philippe Apparel IN 75.4 1.3 294 Big Bazaar Grocery IN 74.3 -2.9 245 Vanguard Grocery CN 75.3 -1.1 295 Cotswold Outdoors Sports & Outdoors UK 74.3 – 246 Cache Cache Apparel FR 75.3 -0.0 296 Holland & Barrett Health & Beauty UK 74.3 -2.8 247 Go Outdoors Sports & Outdoors UK 75.3 – 297 Superdrug Health & Beauty UK 74.3 -0.7 248 Metro Grocery CN DE 75.3 -0.4 298 Fast Shop Electricals BR 74.2 – 249 Wickes DIY UK 75.3 1.8 299 BP Polska Service Stations PL 74.2 -0.8 250 Van Heusen Apparel IN 75.3 1.6 300 Safeway Grocery US 74.2 -2.3

¹ The score is the retailer’s highest overall proposition rating globally. Consumer proposition index ratings within a country have been normalised to make them comparable globally ² Change indicates difference in overall proposition rating 2012-13

09 An OC&C Insight Would You Trust a Machine? TOP 400 RETAILERS CHASING AT RETAILER IN LAST 3 MONTHS (INDEXED 0-100)

Rank Company Category Country Score¹ Chg² Rank Company Category Country Score¹ Chg² 301 Ricardo Eletro Department Stores BR 74.2 – 351 Maplin Electricals UK 73.0 -1.1 302 Discount US 74.2 -0.9 352 Kruk Jewellery PL 72.9 – 303 Móveis Grazin Furniture BR 74.2 – 353 Adler Apparel DE 72.9 0.1 304 Merlin Gen Merch PL 74.1 -3.7 354 Boden Apparel UK 72.9 -1.7 305 Overstock.com Household US 74.1 – 355 Booths Grocery UK 72.9 – 306 Mannings Health & Beauty CN 74.1 -3.0 356 Xenos Household NL 72.8 0.9 307 Street One Apparel DE 74.1 – 357 Redcoon Electricals DE 72.8 -0.6 308 DirkBasDigros Grocery NL 74.1 1.1 358 The Sting Apparel NL 72.8 -1.1 309 Jumbo Grocery NL 74.1 -1.0 359 Wyevale Household UK 72.8 – 310 Dillards Department Stores US 74.0 -5.0 360 Lulu Lemon Apparel US 72.8 – 311 Karstadt Department Stores DE 74.0 0.9 361 Me&City Apparel CN 72.7 -1.4 312 Lojas Colombo Department Stores BR 74.0 – 362 Star Bazaar Grocery IN 72.7 1.3 313 Conforama Household FR 74.0 -0.2 363 Fat face Apparel UK 72.7 -1.9 314 Wöhrl Apparel DE 74.0 5.3 364 Grocery UK 72.7 – 315 Schuh Apparel UK 74.0 – 365 Max Bahr DIY DE 72.7 -3.1 316 Abercrombie & Fitch Apparel US 74.0 -5.2 366 Courtepaille Food Service & QSR FR 72.6 -2.8 317 Space NK Health & Beauty UK 74.0 – 367 Urban Outfitters Apparel US 72.6 – 318 Ted Baker Apparel UK 74.0 -4.0 368 Café Coffee Day Food Service & QSR IN 72.6 – 319 River Island Apparel UK 73.9 -0.5 369 Discount US 72.5 -0.8 320 B&Q DIY UK 73.9 -0.3 370 Pimkie Apparel FR 72.5 – 321 Ristorante Del Arte Food Service & QSR FR 73.8 – 371 Etos Health & Beauty NL 72.5 -0.9 322 Blacks Sports & Outdoors UK 73.7 2.2 372 Prezunic Grocery BR 72.5 – 323 Pandora Jewellery PL 73.7 – 373 Century Mart Grocery CN 72.5 -0.9 324 Praktiker DIY PL DE 73.7 -1.5 374 Makro Grocery NL 72.4 – 325 Moonbasa Apparel CN 73.7 -1.1 375 Cyberport Electricals DE 72.4 – 326 Monoprix Grocery FR 73.6 -0.7 376 Giordano Apparel CN 72.3 -1.5 327 RTV Euro AGD Electricals PL 73.6 -0.7 377 Peapod Grocery US 72.3 – 328 Benetton Apparel IN 73.5 1.1 378 Bonita Apparel DE 72.3 -0.6 329 Game Entertainment UK 73.5 2.0 379 Netto Grocery DE PL 72.3 2.2 330 Daphne Apparel CN 73.5 -2.3 380 Grocery FR 72.3 1.9 331 Ross Stores Department Stores US 73.4 -4.5 381 Robert Dyas DIY UK 72.2 -1.1 332 Bonobo Apparel FR 73.4 – 382 TM Lewin Apparel UK 72.2 – 333 Superdry Apparel UK 73.4 -0.8 383 Intertoys Entertainment NL 72.2 1.1 334 Diapers.com Other US 73.3 – 384 Majestic Wine Other UK 72.2 -3.2 335 Forever 21 Apparel US 73.3 -4.0 385 Bruna Entertainment NL 72.1 -0.2 336 Kruidvat Health & Beauty NL 73.3 0.8 386 Grocery FR 72.1 -0.4 337 Spartoo Apparel FR 73.3 0.1 387 Karen Millen Apparel UK 72.1 – 338 Ernest Jones Jewellery UK 73.2 -0.1 388 Go Sport Sports & Outdoors FR 72.1 0.1 339 Office Max Stationers US 73.2 0.9 389 WE Apparel NL 72.1 -1.4 340 Subway Food Service & QSR IN FR 73.2 -0.1 390 Hermes Apparel BR 72.1 – 341 New Look Apparel UK 73.2 -2.2 391 Monsoon Apparel UK 72.0 -4.2 342 Dorothy Perkins Apparel UK 73.2 1.2 392 Takko Apparel DE 72.0 1.5 343 Arrow Apparel IN 73.2 0.7 393 Gamma DIY NL 72.0 0.4 344 Brioche Dorée Food Service & QSR FR 73.2 -0.4 394 Timpson’s Other UK 72.0 0.9 345 Lloyds Pharmacy Health & Beauty UK 73.1 -2.5 395 JC Penney Department Stores US 72.0 -6.7 346 Atol Optical FR 73.1 1.2 396 Reno Apparel DE 72.0 -0.3 347 Dumond Apparel BR 73.1 – 397 Rite-Aid Health & Beauty US 71.9 -2.4 348 HSN.com Gen Merch US 73.1 – 398 Pottery Barn Household US 71.9 -5.0 349 Famila Grocery DE 73.1 -0.1 399 Penny Grocery DE 71.9 1.8 350 Relay Entertainment FR 73.0 – 400 Van Haren Apparel NL 71.8 -1.0

¹ The score is the retailer’s highest overall proposition rating globally. Consumer proposition index ratings within a country have been normalised to make them comparable globally ² Change indicates difference in overall proposition rating 2012-13

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